1. Lectures in Macroeconomics- Charles W. Upton Monetary Policy Rules

2. Announce Monetary Policy as a function of conditions. Thus people know what you are doing.

3. Monetary Policy Rules The Taylor Rule

4. Monetary Policy Rules Tradeoffs Unemployment too high? We need to raise , which we do by increasing money growth. BUT if we overdo that, we will get inflation

5. Monetary Policy Rules Tradeoffs Inflation too high? We cut it by decreasing money growth. BUT if we overdo that, we will get unemployment

6. Monetary Policy Rules Publicity And, no matter what we do, there are a number of people nervously looking over our shoulder. We can create anxiety and uncertainty.

7. Monetary Policy Rules A Possible Rule

8. Monetary Policy Rules A Possible Rule

9. Monetary Policy Rules A Possible Rule

10. Monetary Policy Rules A Possible Rule

11. Monetary Policy Rules A Possible Rule Make it Public!

12. Monetary Policy Rules A Possible Rule What happens if you don’t stick to the rule?

13. Monetary Policy Rules Changing Conditions What happens if conditions change?

14. Monetary Policy Rules Changing Conditions What happens if conditions change?

15. Monetary Policy Rules The Friedman Rule Make it Public!

16. Monetary Policy Rules Why the Friedman Rule?

17. Monetary Policy Rules Why the Friedman Rule?

18. Monetary Policy Rules The Greenspan Rule

19. Monetary Policy Rules The Greenspan Rule A thorough analysis of economic conditions

20. Monetary Policy Rules The Greenspan Rule A careful throwing of darts

21. Monetary Policy Rules Velocity

22. Monetary Policy Rules Velocity

23. Monetary Policy Rules Velocity

24. Monetary Policy Rules End ©2004 Charles W. Upton. All rights reserved